The following data from the just completed year are taken from the accounting records of Kenton Company: Sales Direct labor cost $ 975,000 165,000 229,000 48,750 146,250 180,000 175,050 Raw material purchases $ Selling expense Administrative expenses Manufacturing overhead applied to work in process $ $ $ Beginning $ $ Actual manufacturing overhead costs Inventories: Ending 18,000 $ 20,000 $ 9,000 $ 17,500 14,750 11,000 Raw materials Work in process Finished goods 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement. %24
The following data from the just completed year are taken from the accounting records of Kenton Company: Sales Direct labor cost $ 975,000 165,000 229,000 48,750 146,250 180,000 175,050 Raw material purchases $ Selling expense Administrative expenses Manufacturing overhead applied to work in process $ $ $ Beginning $ $ Actual manufacturing overhead costs Inventories: Ending 18,000 $ 20,000 $ 9,000 $ 17,500 14,750 11,000 Raw materials Work in process Finished goods 1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production were direct materials. 2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied overhead is closed to Cost of Goods Sold. 3. Prepare an income statement. %24
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Question
![The following data from the just completed year are taken from the accounting records of Kenton
Company:
Sales
Direct labor cost
Raw material purchases
Selling expense
Administrative expenses
Manufacturing overhead applied to work in process $
Actual manufacturing overhead costs
Inventories:
975,000
165,000
$
229,000
$
48,750
146,250
180,000
$
175,050
Ending
17,500
14,750
11,000
Beginning
Raw materials
$
18,000 $
Work in process
$
20,000 $
Finished goods
$
9,000 $
1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production
were direct materials.
2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied
overhead is closed to Cost of Goods Sold.
3. Prepare an income statement.
%24](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7fb5f1c9-2b90-407a-9e06-2746ef4f630b%2F0fc17bef-c19b-44dd-8e49-d872a8146db5%2F1fq31mq_processed.png&w=3840&q=75)
Transcribed Image Text:The following data from the just completed year are taken from the accounting records of Kenton
Company:
Sales
Direct labor cost
Raw material purchases
Selling expense
Administrative expenses
Manufacturing overhead applied to work in process $
Actual manufacturing overhead costs
Inventories:
975,000
165,000
$
229,000
$
48,750
146,250
180,000
$
175,050
Ending
17,500
14,750
11,000
Beginning
Raw materials
$
18,000 $
Work in process
$
20,000 $
Finished goods
$
9,000 $
1. Prepare a schedule of cost of goods manufactured. Assume all raw materials used in production
were direct materials.
2. Prepare a schedule of cost of goods sold. Assume that the company's underapplied or overapplied
overhead is closed to Cost of Goods Sold.
3. Prepare an income statement.
%24
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